HR and Employee Screening Issues Affecting your Business

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Information contained in this page is of a general informational nature and nothing herein, or on this website, should be construed as legal advice. For advice on questions of law, please consult a qualified attorney for additional guidance.

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Month: October 2017

A Background Screen is a process—actually, a legal investigative search—to compile past information, including criminal, employment, education, credit records, etc. of an individual for the purpose of helping an organization make employment decisions.

One might think that it’s perfectly fine to just gather information from online public sources. Simply put, it’s not. Employers—and background screening providers—have to abide by laws and regulations that minimize risk to the employer, while also protecting candidates from discrimination. Companies should implement formal background screens to help keep their clients, employees and business safe.

Performing background screens help keep companies safe and minimize risk by verifying and reporting historical information, all while ensuring candidates are who they say they are.

How does the screening process work?

Prior to performing a background screen, the candidate must supply written consent and both the candidate and company must understand and acknowledge rights under FCRA guidelines. This “Authorization for Background Investigation” form is how A-Check Global receives and verifies the candidate’s acknowledgment and authorization to conduct a background screen on the company’s behalf.

A common misconception of the background screening process is that a comprehensive report can be completed and presented within 24 hours or less. In reality, a team of trained professionals work seamlessly together, utilizing both electronic and manual processes to gather the most current and accurate information available.

An average background screen usually takes 2-5 days to complete. However, there are variables that can impact the timeline, such as insufficient or incomplete information provided by the candidate, or the type of screen component(s) requested. Take for example, a county criminal search which can be a lengthy effort depending on where the county is located and on the county resources available to provide information to A-Check.

Let’s take a look at screen components.

Typically, an employer will ask for fairly common types of pre-employment screens: a Social Security Trace, Criminal History Records, Employment History and Education Verification, and perhaps Motor Vehicle Records, Credit Reports, and Drug Screening.

The Social Security Trace can aid in validating the candidate’s identity. It can be used to uncover previous address history and even alias names affiliated with a social security number.

Sources of criminal history records include: county, statewide, and federal criminal records, the national criminal locater database and state and national sex offender registries.

Employment verification requirements—how much historical information is requested—tends to vary from client to client, and A-Check Global tailors this search to meet the employer’s business needs.

Education verifications validate an applicant’s high school, college, or trade school diplomas and degrees.

State laws vary regarding retention of driving records. Generally, this search will reveal the candidate’s 3-5 year driving history and may provide insight into any potential areas of concern.

Once a background screen is complete, the employer can review the results and make an informed employment decision based on this information. Keep in mind that using this information for hiring decisions must be done in compliance with Federal and state regulations including the Fair Credit Reporting Act, and the Equal Employment Opportunity Commission. Likewise, candidates must have ample opportunity to review their completed background report if requested prior to the screen, and dispute any specific items they question.

If you’re tasked with analyzing your current screening program, or just have questions about your background screening process, we would welcome the opportunity to be part of that conversation. A-Check Global’s team of dedicated professionals are available to help, and can provide friendly, accurate guidance. Give us a call today at 877-345-2021, or email support@acheckglobal.com.

Welcome to the second Blog article in our CRAsh Course on Credit Reporting. In this article, we’ll focus on the lasting impact a changing financial landscape can have on credit reporting legislation.

It’s 2017—nearly a decade since the Great Recession ended—and while things have recovered for many people financially, the lasting effects of the catastrophic financial event continue to be felt by some.

Due to more than 7 million foreclosures and the high rate of unemployment during, and shortly after the recession, a large percentage of the US population has negative information on their credit reports caused directly by the economic downturn.

To ensure those who experienced financial stress during the Great Recession could continue pursuing employment opportunities, important—and popular—regulations were implemented to limit the use of credit reports on pre-employment background screens.

Legislation now defines when and how credit reports can be used for employment decisions

In states where no laws are in place, cities have stepped in to limit use of credit reports when making a hiring decision. Philadelphia and New York both have these rules in place.

These laws are fairly common sense. They typically bar employers from analyzing an applicant’s credit history unless the position deals significantly with money. Money handlers, accountants, managers and other financial positions are usually exempt from protection under the law.

While you may argue that knowing your new stock person or receptionist’s money handling abilities gives you a better idea of their potential to be a reliable employee, the candidate and EEOC may argue differently and claim the process is discriminatory. Even if you’re right, battling this in court costs time, money, and stress that’s easily avoided by simply limiting credit screening to personnel with financial responsibilities.

Credit reports are only conducted on candidates with significant monetary responsibilities

Your screening policy includes detailed information on why credit reports are used

Separate screening policies are in place for money handling and non-money handling positions

Background screens are conducted the same way for all candidates based on their position

Your legal team has reviewed screening policies for compliance with state and federal guidelines

Another way to help ensure compliance to ongoing changes in legislation is to utilize the services of a background screening company—like A-Check Global—with a robust compliance department. As a trusted business partner, we review our clients’ screening policies, ensure services are not being conducted in violation of regulations, track legal changes, and suggest policy updates when new rules are put in place.

For more information about this topic feel free to contact us at connect@acheckglobal.com. We welcome the opportunity to speak with you.

When information contained in an A-Check Global background check is used wholly or in part by a requester to deny employment to an applicant, a specific process must be followed to comply with the requirements of the Fair Credit Reporting Act (FCRA). This process affords the applicant an opportunity to review their background report and dispute any specific information, if deemed inaccurate.

We’re here to help!

As your trusted partner, A-Check Global developed an Employment Screening Adverse Communication Kit to assist clients (end users of consumer reports) with regulatory responsibilities in accordance with FCRA Section 604(b)(3)(A). This kit helps save time, minimizes paperwork, and recommends a timeline to ensure applicants receive their pre-adverse notifications in a timely manner and are given a reasonable period to review results before final adverse notification is provided.

This kit contains two documents: (1) a pre-adverse communication/applicant response form, and (2) a final adverse action letter. Please consult with your Corporate HR as you follow the Instructions to create your company’s compliance documents.

Please also keep in mind, A-Check Global is not providing legal advice or counsel, thus our kit should not be deemed as such. Consult with your legal counsel to ensure the final product conforms to the needs of your organization.

Use our 2-step process to remain compliant

To facilitate the Adverse process, simply use our sample templates, customize them to meet your business requirements, and then mail out the Pre-Adverse and Adverse Notice yourself. Or, give us a call—we would be happy to assist in managing this process on your behalf.

Note: It is vital to your organization to ensure that the Adverse Action two-step process is executed each time a decision not to hire or place an applicant is made based on the content of a background report.

To process a Self-Adverse notification:

Provide the applicant the pre-adverse letter with response form and a copy of the report used to make the adverse decision. Prepare each letter by adding the applicant’s name and the Consumer Reporting Agency’s name and contact information. This letter is designed to provide the applicant the opportunity to dispute any inaccurate or missing information within the report.

If the applicant does not respond to the pre-adverse letter after a reasonable period of time—A-Check recommends six [6] business days—follow up with the applicant by providing them the final adverse action letter. Again, it is very important to add and confirm the applicant’s name and Consumer Reporting Agencies contact information—ensuring the name of the Consumer Reporting Agency on the report and the name of the Consumer Reporting Agency on the letter match.

The applicant can then dispute the accuracy of the Consumer Report by going online at http://www.myacheck.com or they can email us or contact us directly.